Company news
digitec and Galaxus introduce quantity discount
by Alex Hämmerli
This is how often customers snag quantity discount deals
17.4.2023
Translation: Veronica Bielawski
Digitec Galaxus now stocks over 300,000 products with volume pricing in its Swiss range. Customers are happy about it – in March, four out of ten purchases were made with a quantity discount.
In the Swiss range on Digitec and Galaxus, a good 300,000 out of the five million products are now available with a quantity discount. For example, if you buy the Barista Oat Drink from Oatly on Galaxus, you pay 41 per cent less for four packs or more than for a single pack (as of early April 2023). With Gourmet Gold cat food, pet parents save about a third when buying four or more packs. The same goes for AAA batteries from Varta and baby shampoo from Weleda.
«Thanks to quantity discounts, we can offer low-priced products at very attractive conditions,» says Hendrik Blijdenstein, Chief Commercial Officer and responsible for the product range at Digitec Galaxus. The thinking behind volume pricing is as follows: the lower the price of a product, the greater the proportion of logistics costs. Storage, packaging, mailing and transferring orders to our stores costs the same for high-priced products (e.g. smartphones) as for lower-priced products (e.g. liquid soap). The same principle applies if you order several bags of liquid soap instead of one – it allows you to profit from a quantity discount.
Savings potential in your shopping cart
On average, customers save 35 per cent on the basic price when buying products with so-called volume pricing. The discounts are well received by Digitec and Galaxus customers. In March 2023, customers ordered a good four out of ten products at a discount (see graph). The rate is particularly high for supermarket products, where nine out of ten orders contain multiple units of the item. «Our prices for several units of a product are often lower than in brick-and-mortar retail,» says Karina Stump, Leader Category Management, who’s in charge of the supermarket sector. «For long-lasting consumer goods, buying in larger quantities makes a lot of sense.»
Volume pricing is also common in the beauty and health range, that is, creams, shampoo, dental floss and razor blades. «The quantity discount is very attractive, especially when it comes to low-priced products,» says Category Business Manager Martina Tatavitto.
The proportion of orders containing quantity discounts is many times higher than the proportion of products available with a quantity discount in the range. Six per cent of all products on Digitec and Galaxus are available with a quantity discount, yet they account for 42 per cent of all purchases. Of course, the higher the proportion of products with volume pricing in the range, the higher their share of all orders will be.
«Thanks to volume pricing, we’ve been able to vastly improve our competitiveness in low-priced products,» says CCO Hendrik. Particularly in the fast-growing supermarket range, the number of products with a quantity discount is expected to continue rising. «When it comes to our existing range, however, we’ve largely exhausted the potential.»
Have you bought products with a quantity discount at Digitec or Galaxus? Are you a bargain hunter? What do you think of our prices? And what are your favourite products to grab at a discount? Join the discussion in the comments section!
Alex Hämmerli
Senior Public Relations Manager
Alex.Haemmerli@digitecgalaxus.chAt Digitec and Galaxus, I’m in charge of communication with journalists and bloggers. Good stories are my passion – I am always up to date.
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